Unit 1: Business and the Business Environment

Example Answer of Unit 1: Business and the Business Environment

LO1 Explain the different types, sizes and scope of organisations

EXECUTIVE SUMMARY

This industry analysis focuses on the technology sector, specifically, the Apple Inc. The goal of this analysis is to gain insight into the industry. It analyses best practices for high-performing companies and collects information on high-growth sectors of the technology industry. The research was carried out through secondary sources including analysis of relevant data. The technology industry is evolving rapidly and competitively. According to the Five Forces analysis, the industry is characterized by the threat of new entrants. Bargaining power of customers and suppliers, threat of substitute products and services, and competition within the industry. However, there are still opportunities for growth in new areas such as artificial intelligence, cloud computing, and cybersecurity.

Apple Inc. is a recognised player in the technology industry with a strong market position and diverse product portfolio. The company`s vision is to be the leading provider of innovative technology solutions. The company`s mission is to empower businesses and individuals through technological advancement. It has a clear organizational structure with clear roles and responsibilities. From this analysis, it is encouraged the company to capitalize on opportunities in high-growth areas. Improve your international expansion efforts. Invest in research and development to stay at the forefront of technological progress and develop effective marketing and brand strategies.

In Conclusion, the technology sector has enormous potential for growth and innovation. By leveraging an industry perspective to identify best practices and adapt to emerging trends, the organisation continues to be a high-performing company in the ever-evolving technology industry.

INTRODUCTION

This industry research, which centres on the Apple Inc, offers insights into the technology sector. This analysis`s goals are to compile viewpoints from the industry, pinpoint best practices from high-achieving businesses, and investigate rapidly expanding technology-related fields. The comapny`s management team and the line manager will be presented with the results in this report.

P1 Different types and purposes of organisations

In the technology industry, several business models may be established, each with unique benefits and drawbacks. In the instance of Apple Inc, the assignment task may cover several subjects. A single proprietorship is the first business structure that Apple Inc could take into consideration. The company would be owned and run by a single person. This kind of company has the benefit of being cheap and simple to start up (Bratton et al., 2021). The owner can keep all of the earnings and has total control over all decision-making processes. The owner`s liability for the company`s debts and legal responsibilities is a significant drawback, too.

Apple Inc may also choose to form a partnership. This is a company or group of people who jointly manage and manage a company. There are two types of partnerships. A limited partnership has limited partners who have limited liability. and a general partner to manage the business. or a general partnership in which all partners share profits and liabilities. The benefit of shared decision-making, resources, and financial responsibility is provided by partnerships (Collings et al., 2021). On the other hand, partner disputes and disagreements can be a big drawback.

As an alternative, the company can decide to become an LLC (limited liability corporation). The owners of this kind of corporate organisation, referred to as members, are provided with limited liability protection. This implies that none of the members has personal liability for the obligations and liabilities of the business (Anwar and Abdullah, 2021). Because LLCs can elect to be taxed as either a pass-through organisation or as a corporation, they also offer tax flexibility. However, compared to other business formats, creating an LLC involves more paperwork and upkeep.

Finally, the company may choose to become a company. This is a distinct legal entity from its stockholders, who are its owners. One of a corporation`s main benefits is limited liability protection, which shields shareholders from being held personally accountable for the debts and liabilities of the business. Companies can continue to exist indefinitely and can raise money by selling stocks (Chowdhury et al., 2023). Corporations, however, are often more expensive to establish and operate and are subject to more intricate legal and tax regulations.

The analysis report may cover a variety of topics in addition to the types of businesses, such as the value of market research and analysis for the company, branding and marketing strategies in the technology sector, the importance of protecting intellectual property, the role of technology in business operations, and potential opportunities and challenges in the field.

M1 Analyse how the structure, size and scope of different organisations link to the business objectives.

The Five Factors Model looks at five factors that affect competition and profitability including the level of rivalry among competitors, the threat of alternative goods and services, the danger of new competitors, and suppliers` and buyers` negotiating power (Stone et al., 2023). The Five Forces Model examines company that works in the technology industry.

Bargaining power of buyers

In the IT industry, it is well known that buyers have strong bargaining power. Because customers have many choices. This makes it easy to turn to competitors if they are dissatisfied with Apple Inc. products or services. Additionally, the presence of social networks and sites can quickly spread unfavourable opinions, which can damage a company`s reputation. Check (Vrontis et al., 2022) To reduce the bargaining power of buyers and retain customers, the organisation should focus on providing superior products and customer service.

Bargaining power of suppliers

Suppliers, who are suppliers of critical components such as microchips and software, have moderate bargaining power in the technology sector (Hammouche, 2021). There may be some impact on the company, especially if it is a small number of companies or those with proprietary technology. However, it may be able to strengthen its relationships with multiple suppliers or vertically integrate its supply chain. Supply from a single source can be reduced by diversifying the supply base.

The threat of new entrants

The risk of new competitors entering the technology industry is very high (Azizi et al., 2021). Rapid technology advancements and low barriers to entry allow new competitors to enter the market and disrupt industry segments. easier to define. This can lead to price pressure and increased competitiveness. To address this risk, the company must continually innovate. Showcase your superior products and services and have a strong brand identity to differentiate yourself from other players in the market.

Threat of substitute products or services

The threat of product and service disruption in the technology industry is serious (Mahapatro, 2021) Rapid technological advances create new products and services. To address this risk, the company must stay ahead by investing in research and development to produce innovative products and provide value-added services to available customers.

Intensity of competitive rivalry

There is fierce competition in the technology field. As many companies in this industry compete to increase market share and maintain competitive advantage (Patanayak, 2020), Apple Inc closely monitor competitors` strategies, costs, and product offerings. need to do it. Competitive advantages must be leveraged to maintain market leadership. This also includes economies of scale established customer base and intellectual property rights to maintain a dominant market position.

P2 Size and scope of the organisation

The company is one of the leading technology company in software development. The size of the company is stated below.

The Apple Inc. scope is clearly defined boundaries that include all activities performed to develop and deliver a software product. The company defines what the product does and does not do, what is included in the final product and what is not. The vision and mission of the company if stated below.

Vision and Mission

The vision of the company is to establish itself as a world leader in cutting-edge technological solutions, providing cutting-edge goods and services that enable people and companies to prosper in the digital era.

The mission is to make people`s lives easier and better by offering intelligent and effective technological solutions that keep them safe, connected, and productive. The company wants to achieve this goal by constantly pushing the limits. Invest in research and development and promote a culture of innovation and cooperation.

P3 The relationship between different organisational functions and how they link to organisational objectives and structure.

SWOT

SWOT analysis is used to evaluate the strengths, weaknesses, opportunities, and threats faced by the organisation.

Strengths

Apple Inc employees are extremely talented and creative. Excellence in the development and implementation of innovative technology solutions. The company has an excellent reputation for quality and reliability. The organisation also has a strong financial position, supported by the many successful projects it has completed over the years. This allows the company to expand its business and engage in research and development.

Weaknesses

The company face intense competition from both start-ups and established companies, challenged by the need to constantly adapt to rapidly expanding technology and changing consumer demands.

Opportunity

Apple Inc has the ability to leverage cutting-edge technologies such as artificial intelligence and the Internet of Things to create innovative products and services. It has significant room for growth as the industry continues to embrace cloud computing and digital transformation.

Threats

The company is under threat from new competitors who may offer similar products at lower prices. This is because data security is very important in the technology field. Therefore, various organizations face the risk of cybersecurity breaches.

M2 The interrelationships between organisational functions and the impact that can have upon organisational structure.

PESTLE

PESTLE analysis is used to evaluate the potential impact of political, economic, social, technological, legal and environmental variables on Apple Inc. internal departments.

Policy

The company activities may be affected by political changes in laws and government policies related to technology standards, data protection and intellectual property rights.

Economic aspect

The company`s financial performance and investment decisions may be affected by a number of economic factors. This includes but is not limited to, market fluctuations, exchange rates and consumer purchasing power

Social

Changing consumer preferences and societal shifts impact Apple Inc marketing and product development strategies, and it is also committed to the inclusion and diversity of its workforce to reflect the diverse communities it serves.

Technologies

The organisation relies on rapid technological advances in product research and development. The company invests in the latest equipment and facilities to keep pace with technological advances.

Legal issues

Compliance with all relevant laws and regulations, especially in relation to employment, consumer protection and intellectual property rights. This is essential to Apple Inc. business operations and reputation.

Environment

The company is committed to environmental sustainability. It is adopting environmentally friendly practices that ensures the supply chain is well managed, reduces carbon dioxide emissions, and promotes environmentally friendly solutions. It makes informed decisions and takes advantage of the opportunities available in technology (Stone et al., 2023).